Monday, Feb. 14: Reorg Asia Credit Daily: China Markets Start Week on Shaky Ground

Malaysia’s economy returned to growth in the fourth quarter of 2021, as coronavirus curbs in the country were lifted and economic activity resumed. The nation’s gross domestic product rose 3.6% in the October to December period, faster than the 3.3% rise forecast in a Reuters poll and up from a 4.5% decline in the previous quarter. Meanwhile, the country’s full-year economic performance expanded 3.1% in 2021, rebounding from a 5.6% drop in 2020, CNA reported.

A tax cut on crude palm oil (CPO) imports to India from 7.5% to 5% came into effect Feb. 13 as the world’s biggest edible oil importer tries to rein in local prices of the commodity and help domestic refiners and consumers. The reduction in tax, known as the Agriculture Infrastructure and Development Cess (AIDC), will widen the gap between the CPO and refined palm oil import duties, making it cheaper for Indian refiners to import CPO, Reuters reported.

Japan will ease bans for business travelers and foreign students this month by starting to accept entries of more than 1,000 people a day and gradually raise the cap to several thousand, Nikkei Asia reported, while the government is also considering cutting quarantine periods to three days from seven days.

Hong Kong’s leader Carrie Lam said that the “onslaught” of coronavirus infections in the city, with daily new infections surpassing over 1,000 cases since Feb. 9, has dealt a heavy blow and overwhelmed its capacity to deal with the epidemic and therefore would coordinate with Chinese officials to tackle the situation after China said it would help with testing, treatment and quarantine, according to Reuters.

Hong Kong’s Hang Seng Index dropped 1.25% to 24,594 as of 12:49 p.m. HKT, while the Shanghai Composite Index went down 0.63% to 3,441 as of 12:49 p.m. Beijing Time. Japan’s Nikkei 225 Index fell 2.09% to 27,118 as of 1:49 p.m. JST. Australia’s S&P/ASX200 was up 0.24% to 7,235 as of 2:50 p.m. AEST.

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